The EPS for 2010-11 is projected at Rs.11.87 against which the share was offered at Rs.135 and the proj. PE is 11.37.
The basis are as follows:
1. Factory expansion is only in 2011-12 so no increase in interest and dep. on account of that.
2. Saving in int of 1 cr.(6 months)on repayment of loan of Rs.20crs.
3. Saving in int of Rs.1.50crs.(6 months) as Rs.30.00 crs. required for working capital may be required only during 2011-12 when most of the stores are going to be operational.
The increase in EPS after tax of 30% is Rs.1.07/share.
4. 20% growth in same store sales and profit year on year. The increase in EPS is Rs.1.80.
P.S.This is purely based on fundamentals and with information available to public.